If you drive a car, I'll tax the street; If you try to sit, I'll tax your seat; If you get too cold, I'll tax the heat; If you take a walk, I'll tax your feet. "Taxman" - The Beatles   Biden's tax proposals have finally been put into legislation and released on September 13th. Thankfully they're not as bad as the Beatles lyrics and tax increases were also less than what was expected.   Hear Kevin discuss key proposals for individuals with the good, the bad, and those that didn't make it into the bill, and be sure to pay attention to the end to hear the key things to do to keep more in your pocket.   Read more: https://www.truewealthdesign.com/ep-83-bidens-american-families-tax-plan-key-changes-planning-opportunities/    Today's rundown:    1:12 - Celebrating a birthday 4:33 - Background on the proposal 6:11 - The bad 10:44 - Backdoor Roths 13:36 - IRA change for accredited investors 16:02 - The good 21:20 - Things that didn't make it in 27:18 - Planning to-do items

Retire Smarter

Ep 83: Biden‘s ”American Families” Tax Plan - Key Changes & Planning Opportunities

The 2021 Social Security Trustee's Report was recently released and the 2022 COLA is near finalized.  What can we expect for the COLA and glean from the report?   Tune in to hear the important points and key planning implications for your Social Security benefits.   Spoiler alert: Social Security solvency is not as bad as you may be led to be believed by the media and planning strategies remain important and are more key in today's low-interest rate world.   Read more: https://www.truewealthdesign.com/ep-82-social-security-update-solvency-cola-planning-strategies/      The rundown for this episode:    2:41 - Background on this topic 3:40 - Trustees report  8:07 - Solvency fixes 12:49 - Cost of Living Adjustment 17:30 - Problems that create opportunities 21:35 - Survivor benefits 22:26 - SS using outdated interest rate assumptions 26:48 - Planning implications

Ep 82: Social Security Update - Solvency, COLA, & Planning Strategies

In the age of Covid, everyone has seemingly become a data expert .... regardless of one's understanding of data and statistics (sigh).    Hear Kevin highlight some recent math errors he's observed in media, relate them to investing errors, and tie in vaccines to boot.     He'll describe how making bad comparisons in identifying mutual fund category winners is subject to similar errors to drawing conclusions about the recent Cape Code headline where a Covid outbreak infected 74% of vaccinated people.    He'll also explain how butter production in Bangledesh is tied to the S&P 500 and why you should (or shouldn't?) "sell in May and go away."   Put your thinking cap on and happy listening!     Get more information: https://www.truewealthdesign.com/ep-81-math-mistakes-in-the-media-investing-and-in-understanding-vaccines/     Key Points:    1:02 - Quick shout out for a team member 3:35 - Covid update 6:19 - Background on our topic 11:13 - Deceptive investment performance advertising 14:44 - The vaccine equivalency 19:24 - Correlation does not equal causation 25:37 - Additional examples of vaccine data and cherry-picking 36:50 - Closing thoughts   

Ep 81: Math Mistakes in the Media, Investing, and in Understanding Vaccines

You may have acquired stock and seen it significantly rise in value over time. Now you're not sure what to do: let it ride or sell, pay taxes, and reinvest in a better portfolio.   Astute investors know concentrated stock holdings are suboptimal and expose a portfolio to diversifiable risks. But simply selling regardless of tax consequences is also short-sighted. So how do they best fit into your portfolio and financial plan?   Hear Kevin discuss how to think through this complex decision. He will evaluate the costs and expected benefits of making a partial or full transition and discuss how Separately Managed Accounts or SMAs can be used as a tax-smart tool to better optimize your investments in light of concentrated or low-cost basis stock positions.   Even if you do not have concentrated or low-cost basis stock positions, the insights you'll get on optimizing your portfolio and drivers of its results make it worth a listen.   Show notes: https://www.truewealthdesign.com/ep-80-should-i-sell-a-stock-with-a-large-taxable-gain/    What we discuss on this episode:    3:23 - Background on this tax scenario 8:15 - Selling out of your positions and then reinvesting 14:01 - Statistical modeling to find the best return 18:06 - Formulating the expected returns 19:21 -  What to do with legacy holdings 23:53 - The benefit of true customization  29:57 - What to expect from your financial advisor  

Ep 80: Should I Sell a Stock With a Large Taxable Gain?

Have you heard of ESG? Many investors today are selecting investments in part based on Environmental, Social, and Governance (ESG) criteria. Don't like fossil fuels, weapons, or pornography? Want to focus on companies that have diverse boards, executive teams, and overall workforce? Have religious beliefs you want to follow when it comes to investing? Then ESG may be right for you. Hear Kevin discuss solutions for those seeking to align their investments to their ESG values and discuss challenges and investment considerations in doing so. He'll also share several recent client examples that have pursued ESG investing.   What we discuss on this episode:  1:07 - Watching the Olympics 3:26 - Why ESG has become a trendy conversation 8:46 - Where do you draw the line? 12:38 - Picking investments 17:26 - Challenges with ESG 22:04 - How many clients prioritize this?     Contact: True Wealth Design Website: http://www.truewealthdesign.com/ Call: 855-893-7526 Schedule: http://bit.ly/calltruewealth

Ep 79: Aligning Your Investments With Your Values

Do you know a smart, financially savvy person that still hires a financial advisor? Ever wonder why they do so? Many family stewards often seek an advisor to take care of their family's finances if they cannot. Know a couple where one spouse took care of the family finances and then passed, leaving the surviving spouse the fear and frustration of picking up the financial pieces all while going through the grieving process? Family stewards seek to avoid this. Yet married couples often get even more and unexpected benefits from working with a financial advisor. Communication is the essence of healthy relationships. Quite often meeting with an emotionally intelligent financial advisor can enhance the communication and understanding between spouses while bringing objectivity to the financial and emotional aspects of the relationship. Hear Kevin relate his story of when he and his wife met with a financial advisor and how it helped them get more aligned. He also shares a client story where spouses weren't on the same page regarding retirement but through open communication and sound financial planning, they are now excitedly turning the page into retirement together.   What we discuss on this episode:  1:05 - Vacation 2:43 - Why a podcast review inspired this topic 4:41 - Who will take care of my family if something happens to me? 9:07 - We need to hear what's important to both spouses 12:55 - Finding the best way to communicate 18:12 - Couples that aren't on the same page   Contact: True Wealth Design Website: http://www.truewealthdesign.com/ Call: 855-893-7526 Schedule: http://bit.ly/calltruewealth

Ep 78: Unexpected Benefits Married Couples Get From A Financial Advisor

What type of investor are you? Are you conservative, moderate, or aggressive?   These qualitative descriptors are how most think of risk. But what is conservative to you may not be conservative to another.  Rather than using non-measurable descriptions of risk, your customized retirement plan needs to be the foundation to objectively measure risk. Then and only then can the three types of risk -- required return, risk capacity, and risk tolerance -- be accurately evaluated and aligned. Why is this important? Take too little risk and it can be a conservative way to go broke. Take too much and you may go broke more quickly. Like the story of the Three Bears you want it just right.   Timestamps: 2:20 - What is risk tolerance? 8:30 - How this applies to our planning. 12:38 - Taking emotions out of the risk conversation 18:14 - Client examples 22:45 - Ongoing process for every individual     Contact: True Wealth Design Website: http://www.truewealthdesign.com/ Call: 855-893-7526 Schedule: http://bit.ly/calltruewealth

Ep 77: How Risky of an Investor Are You? (And How Do You Really Know?)

Many think retirement planning is all about number crunching. While undoubtedly important, you first need to consider the personal and social aspects of your ideal life and retirement. Then align your resources to best support it.   You may recall from your studies psychologist Abraham Maslow's work on the Hierarchy of Needs. Maslow's work translates to retirement quite well. Interestingly, many types of needs are met at least in part through work. Take work out of the equation and those needs remain. So how do you meet them in retirement, so you can be a happy and fulfilled self-actualizer?   Hear Kevin discuss Maslow's work and how it relates to retirement. He'll discuss real-life stories of how clients have retired but struggled to meet needs without work with the hope of helping you avoid the same.     Timestamps: 0:58 - Back from first successful camping trip 4:03 - What does this hierarchy have to do with finance? 6:39 - Looking back on undergrad school 12:37 - Moving up the pyramid 15:27 - Client stories to illustrate this idea 26:12 - Differences between gender 30:21 - Exploring these levels with clients     Contact: True Wealth Design Website: http://www.truewealthdesign.com/ Call: 855-893-7526 Schedule: http://bit.ly/calltruewealth

Ep 76: Your Hierarchy of Retirement Needs

Having reasonable assumptions for investment returns is critically important for many reasons. These assumptions will impact your retirement plan, investment allocation, and your peace of mind. Why peace of mind? Well, if you are expecting something unreasonable, no doubt you're likely to be dissatisfied and more likely to be undisciplined. Hear Kevin review 10-year return forecasts from leading money managers Blackrock and Research Affiliates. What are domestic and foreign stocks likely to do? How about bonds and real estate? Tune in to find out and become a more informed investor.   Timestamps: 4:05 - Gauging Expectations For A Retirement Plan 11:32 - Why 10 Years? 14:50 - Diving Into The Data 29:07 - How Well Have These Predictions Done? 33:51 - How Kevin Uses These Expectations When Putting Together A Retirement Plan   Contact: True Wealth Design Website: http://www.truewealthdesign.com/ Call: 855-893-7526 Schedule: http://bit.ly/calltruewealth

Ep 75: 10-Year Return Expectations

One of the beginning steps in every retirement plan is to value your assets and project their values into the future. Valuing assets like stocks and bonds is easy (though making accurate projections becomes more difficult.) Complexity increases even more when you consider illiquid assets like real estate and business ventures. Hear Kevin discuss how to model illiquid assets in your retirement plan. Learn why focusing on rental income is shortsighted and how scenario analysis with low to high values can be helpful for business owners. If you ever plan to sell real estate, this episode will be helpful. And the more of your net worth is in illiquid assets, the more you need to understand these key concepts to have a well-constructed retirement plan.   Timestamps: 3:34 - Illiquid Assets 8:04 - What’s Caused More Interest In Real Estate? 10:00 - Common Mistakes In Real Estate 16:09 - Treat It Like A Business 19:47 - Incorporating This Into A Retirement Plan 21:47 - Projecting Illiquid Assets   Contact: True Wealth Design Website: http://www.truewealthdesign.com/ Call: 855-893-7526 Schedule: http://bit.ly/calltruewealth

Ep 74: Modeling Real Estate & Business Values In Your Retirement Plan

Hear Kevin describe a conversation he recently had with a podcast listener aged 57. He's planning on working for several more years and was wondering if now is too soon to get serious about planning for retirement. Kevin discussed the qualitative and quantitative benefits clients often get from the Retire Smarter Solution as well as some time-sensitive issues you need to address well before you retire. While it's never too early to start, as your time becomes more valuable, your assets accumulate, and the cost of a mistake becomes larger, it tends to make sense to hire an expert. This way you can make sure you're making the most of what you have.   Timestamps: 1:24 - Ray’s Call With Kevin 4:54 - Getting Clarity 6:37 - Putting Together A Spending Plan 10:08 - Concrete Information 12:22 - Are Clients Better Off The Earlier They See An Advisor? 17:26 - Make The Most Of What You Have   Contact: True Wealth Design Website: http://www.truewealthdesign.com/ Call: 855-893-7526 Schedule: http://bit.ly/calltruewealth

Ep 73: What Age Should You Get Serious About Planning For Retirement?

In the last episode, Kevin answered a listener question on inflation. He explained why retiree spending patterns in part combat inflationary risk retirees face. Now hear Kevin delve deeper into retiree spending patterns. If you don't want to work longer than you have to or want to spend more in retirement, this is an episode you'll want to listen to. Traditional retirement advice of having a steadily increasing income for life is wrong for most. Rather, spending tends to decline with age at a real rate of 1% yearly although increasing healthcare costs at the end of life are common. Carefully modeling these age-related changes and monitoring your plan over time will help you Retire Smarter.   Timestamps: 2:14 - Different Stages Of Spending In Retirement 8:42 - Chase Bank’s Retirement Spending Data 14:02 - David Blanchett’s Health & Retirement Study 17:06 - Getting Accurate Spending Data Into Your Plan   Contact: True Wealth Design Website: http://www.truewealthdesign.com/ Call: 855-893-7526 Schedule: http://bit.ly/calltruewealth

Ep 72: How Your Retirement Spending Is Likely To Change With Age

Your money today will buy less next year. This decline is due to inflation, which is often believed to be the silent killer for a retirement income portfolio over time. After all the 4% spending rule had it's worst result starting in 1966 -- a time when inflation began to rise and peaked in the 1970s while economic growth was choppy at best. Might the future resemble this difficult time? Hear Kevin answer a listener question on inflation and whether the high levels of government spending and rising deficits are likely to lead to high inflation. And, if so, what changes should be made to your planning and investing strategy?   Timestamps: 1:07 - Dan’s Question About Inflation 2:53 - Fundamentals Of Inflation 10:00 - What Can We Expect? 13:09 - Why Inflation Has Been Low In Recent Years 16:51 - Measuring Inflation 24:05 - Closing Thoughts   Contact: True Wealth Design Website: http://www.truewealthdesign.com/ Call: 855-893-7526 Schedule: http://bit.ly/calltruewealth

Ep 71: Inflation Expectations & Implications On Your Investments & Retirement

The government's money-printing machine is ripping. Here comes round 3 of stimulus checks and larger healthcare tax credits for many pre-Medicare retirees. Hear Kevin discuss the 3 rounds of checks, income phaseout ranges, and planning strategies to get yours. In some cases, you may want to file your 2020 tax return sooner and in others, you may want to wait. For many retirees, we are modifying our tax-smart distribution plan midyear 2021, lowering our taxable income targets and reducing Roth conversions, to reap benefits. Otherwise, you may lose out on thousands. As the saying goes, there is no such thing as a free lunch. We're all paying for this in the long run. May as well try to get yours now.   Timestamps: 3:49 - Tax Season Is Upon Us 6:07 - Eligibility & Phase Out Threshold For All 3 Stimulus Checks 19:20 - Short Term Solutions 22:07 - More Changes To Be Aware Of 27:02 - Healthcare Tax Credits   Contact: True Wealth Design Website: http://www.truewealthdesign.com/ Call: 855-893-7526 Schedule: http://bit.ly/calltruewealth

Ep 70: Free Money? More Stimulus Checks & Larger Healthcare Tax Credits

It's not easy to hire a professional service provider. Even the most astute consumer only scratches the surface of truly understanding a profession they are not part of. The information gap is huge. So how do you ensure you find a competent and trustworthy advisor? Hear Kevin nine questions to ask your advisor. He will unpack some of the industry gobbledygook, share disclosures from brand-name Wall Street firms that will surprise you, and help you become a more informed financial-advice consumer. Whether you currently have an advisor or are considering hiring one, this episode is a worthwhile listen.   Timestamps: 5:05 - Questions To Ask A Financial Advisor 11:13 - Are You A Fiduciary Legally Acting In My Best Interest 100% Of The Time? 15:49 - How Do You Get Paid? 25:19 - What Are Your Qualifications? 32:44 - Planning Process 34:21 - What’s Your Investment Philosophy? 39:45 - How Many Clients Do You Have? 43:32 - How Will Our Relationship Work? 48:06 - Will You Require Me To Sell All My Investments To Work With You? 49:36 - Who’s Your Custodian?   Contact: True Wealth Design Website: http://www.truewealthdesign.com/ Call: 855-893-7526 Schedule: http://bit.ly/calltruewealth

Ep 69: Interview Questions To Ask A Financial Advisor

Planning Retirement Smarter. Living Retirement Better. With Kevin Kroskey, CFP® Of True Wealth Design.

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Retire Smarter

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